Pairs trading profitability in the Finnish stock market: A comparison between three methods

Pairs trading is an algorithmic trading strategy that is based on the historical co-movement of two separate assets and trades are executed on the basis of degree of relative mispricing. The purpose of this study is to explore one new and alternative copula-based method for pairs trading. The objective is to find out whether the copula method generates more trading opportunities and higher profits than the more traditional distance and cointegration methods applied extensively in previous empirical studies. Methods are compared by selecting top five pairs from stocks of the large and medium-sized companies in the Finnish stock market. The research period includes years 2006-2015. All the methods are proven to be profitable and the Finnish stock market suitable for pairs trading. However, copula method doesn’t generate more trading opportunities or higher profits than the other methods. It seems that the limitations of the more traditional methods are not too restrictive for this particular sample data.

Variable-speed-drive-based detection methods for problems in fluid handling systems

Fluid handling systems account for a significant share of the global consumption of electrical energy. They also suffer from problems, which reduce their energy efficiency and increase life-cycle costs. Detecting or predicting these problems in time can make fluid handling systems more environmentally and economically sustainable to operate. In this Master’s Thesis, significant problems in fluid systems were studied and possibilities to develop variable-speed-drive-based detection methods for them was discussed. A literature review was conducted to find significant problems occurring in fluid handling systems containing pumps, fans and compressors. To find case examples for evaluating the feasibility of variable-speed-drive-based methods, queries were sent to industrial companies. As a result of this, the possibility to detect heat exchanger fouling with a variable-speed drive was analysed with data from three industrial cases. It was found that a mass flow rate estimate, which can be generated with a variable speed drive, can be used together with temperature measurements to monitor a heat exchanger’s thermal performance. Secondly, it was found that the fouling-related increase in the pressure drop of a heat exchanger can be monitored with a variable speed drive. Lastly, for systems where the flow device is speed controlled with by a pressure measurement, it was concluded that increasing rotational speed can be interpreted as progressing fouling in the heat exchanger.

Understanding the bioactivity of plant tannins: developments in analysis methods and structure-activity studies

Tannins, typically segregated into two major groups, the hydrolyzable tannins (HTs) and the proanthocyanidins (PAs), are plant polyphenolic secondary metabolites found throughout the plant kingdom. On one hand, tannins may cause harmful nutritional effects on herbivores, for example insects, and hence they work as plants’ defense against plant-eating animals. On the other hand, they may affect positively some herbivores, such as mammals, for example by their antioxidant, antimicrobial, anti-inflammatory or anticarcinogenic activities. This thesis focuses on understanding the bioactivity of plant tannins, their anthelmintic properties and the tools used for the qualitative and quantitative analysis of this endless source of structural diversity. The first part of the experimental work focused on the development of ultra-high performance liquid chromatography−tandem mass spectrometry (UHPLC-MS/MS) based methods for the rapid fingerprint analysis of bioactive polyphenols, especially tannins. In the second part of the experimental work the in vitro activity of isolated and purified HTs and their hydrolysis product, gallic acid, was tested against egg hatching and larval motility of two larval developmental stages, L1 and L2, of a common ruminant gastrointestinal parasite, Haemonchus contortus. The results indicated clear relationships between the HT structure and the anthelmintic activity. The activity of the studied compounds depended on many structural features, including size, functional groups present in the structure, and the structural rigidness. To further understand tannin bioactivity on a molecular level, the interaction between bovine serum albumin (BSA), and seven HTs and epigallocatechin gallate was examined. The objective was to define the effect of pH on the formation on tannin–protein complexes and to evaluate the stability of the formed complexes by gel electrophoresis and MALDI-TOF-MS. The results indicated that more basic pH values had a stabilizing effect on the tannin–protein complexes and that the tannin oxidative activity was directly linked with their tendency to form covalently stabilized complexes with BSA at increased pH.

Scanning the future of Single Euro Payment Area – towards cashless payment methods

The future of paying in the age of digitalization is a topic that includes varied visions. This master’s thesis explores images of the future of paying in the Single Euro Payment Area (SEPA) up to 2020 and 2025 through the views of experts specialized in paying. This study was commissioned by a credit management company in order to obtain more detailed information about the future of paying. Specifically, this thesis investigates what could be the most used payment methods in the future, what items could work as a medium of exchange in 2020 and how will they evolve towards the year 2025. Changing consumer behavior, trends connected to payment methods, security and private issues of new cashless payment methods were also part of this study. In the empirical part of the study the experts’ ideas about probable and preferable future images of paying were investigated through a two-round Disaggregative Delphi method. The questionnaire included numeric statements and open questions. Three alternative future images were created with the help of cluster analysis: “Unsurprising Future”, “Technology Driven Future” and “The Age of the Customer”. The plausible images had similarities and differences, which were reflected to the previous studies in the literature review. The study’s findings were formed based on the images of futures’ similarities and to the open questions answers that were received from the questionnaire. The main conclusion of the study was that development of technology will unify and diversify SEPA; the trend in 2020 seems to be towards more cashless payment methods but their usage depends on the countries’ financial possibilities and customer preferences. Mobile payments, cards and cash will be the main payment methods but the banks will have competitors from outside the financial sector. Wearable payment methods and NFC technology are seen as widely growing trends but subcutaneous payment devices will likely keep their niche position until 2025. In the meantime, security and private issues are seen to increase because of identity thefts and various frauds. Simultaneously, privacy will lose its meaning to younger consumers who are used to sharing their transaction and personal data with third parties in order to get access to attractive services. Easier access to consumers’ transaction data will probably open the door for hackers and cause new risks in paying processes. There exist many roads to future, and this study was not an attempt to give any complete answers about it even if some plausible assumptions about the future’s course were provided.